Throughout the market, almost every company comes across some bad debt which they struggle to recover. Companies need to recover their funds in full, as soon as possible, otherwise their future economic activity may face challenges.
The first step to recovering debt is lodging a demand to return the funds. A written demand is mailed to the counterparty in debt, asking the debtor to cover their debt within a certain period of time. The demand states the basis of the claim, the claimed sum and the future plans of the creditor, if the debtor fails to meet the demand. A formal demand is a necessary part of dispute resolution. If a company fails to attempt to settle the dispute outside of court – the court will dismiss the claim automatically.
If a dispute could not be resolved, the parties involved can try to resolve it in court. In the Russian Federation, disputes arising from economic activity are resolved by arbitration courts. A claim of debt recovery must meet the requirements of articles 125 and 126 of the Arbitration Procedural Codex of the Russian Federation.
Aside from recovering the body of the debt, creditors may receive:
Debt should be recovered within 3 years of occurence. Otherwise, the debtor may claim expiration of the period of limitation, thus ending the process in court.
If a claim is fulfilled, the party filing the claim will receive compensation for the expenses it held, therefore, upcoming court cases should be treated with utmost responsibility. Experienced lawyers can help a party achieve victory in court, not only by preparing the necessary documents, but by participating in hearings and defending the client’s interests in court as well.Submit application